A journey of a thousand miles starts with the first step, right? Well, saving is also a step taken towards achieving a financial goal. When carefully thought, one can develop a realistic and achievable savings plan with the steps below.
Save before Spending
Making savings a priority is the first step. It is advisable that you save between 10-15 percent of your income. Depending on your budget and expenses you can either increase or decrease your savings rate.
What are you saving for?
Setting an objective is vital for achieving any goal. Whether it is for long term or short term, put down what you desire and save towards it. Aimless saving does not give you enough motivation to save.
Reduce Your Level of Expenditure
Figure out how much you spend. This is a basis for cutting down costs as well as sealing loopholes of unnecessary spending thus accounting for every coin.
Create a Budget
Well, don’t major economies in the world make budgets? Coming up with one not only measures your expenses up to your income but also enables you to prioritize and organize your spending habits.
Where is Money Safe and Valuable?
In the culture of saving, banks have come up with avenues where you can save your money and still earn some tangible interest. Besides, investment schemes are also a channel where you can save your money and be sure of a return at the end of a financial period.
Have you Heard of Automated Transfers?
Thinking of when, how much, or where to save from can be quite tricky. Such transfers authorize direct deposits between your savings and checking accounts.
Ways of Maximizing Savings
- Eat in- You could save $40-50$ a week if you prepared your meal
- Pay cash- Swiping debit cards can be very addictive. When you shop in cash, you become more aware of what you are spending thus saving you a fortune.
- Minimize your debt- paying off your debt promptly cuts down the interest charged on your credit card hence maximizing your saving options.
- Exhaust online deals- When buying online you’re able to get a variety of options as far as cost is concerned in addition to taking advantage of coupons and scoring great deals online.